You are using an older browser version. Please use a supported version for the best MSN experience.

Top Stories

Bill Gates: We will have another financial crisis—it's a 'certainty'

CNBC logo CNBC 08/03/2018 Kathleen Elkins
PARIS, FRANCE - DECEMBER 12:  Bill Gates arrives for a meeting with French President Emmanuel Macron as he receives One Planet Summit's international philanthropists at Elysee Palace on December 12, 2017 in Paris, France.  Macron is hosting the One Planet climate summit, which gathers world leaders, philantropists and other committed private individuals to discuss climate change. (Photo by Aurelien Meunier/Getty Images) © Catalyst Images PARIS, FRANCE - DECEMBER 12: Bill Gates arrives for a meeting with French President Emmanuel Macron as he receives One Planet Summit's international philanthropists at Elysee Palace on December 12, 2017 in Paris, France. Macron is hosting the One Planet climate summit, which gathers world leaders, philantropists and other committed private individuals to discuss climate change. (Photo by Aurelien Meunier/Getty Images)

The 2008 financial crisis led to the Great Recession and millions of jobs lost. It took years for America to recover and many citizens still feel the ripple effects. According to Microsoft co-founder Bill Gates, though, we should be braced for another one.

During a Reddit "Ask Me Anything" last week, when Gates was asked if, in the near future, the U.S. will have another crisis similar to the one in 2018, he offered a blunt response: "Yes. It is hard to say when but this is a certainty."

He added, "Fortunately, we got through that one reasonably well. Warren has talked about this and he understands this area far better than I do."

In this Feb. 1, 2018 photo, Microsoft co-founder Bill Gates, with his wife Melinda, poses for a photo before an interview with The Associated Press in Kirkland, Wash. The Gateses, as the world's top philanthropists, are rethinking their work in America as they confront what they consider their unsatisfactory track record on schools, the country's growing inequity and a president they disagree with more than any other. (AP Photo/Ted S. Warren) © Catalyst Images In this Feb. 1, 2018 photo, Microsoft co-founder Bill Gates, with his wife Melinda, poses for a photo before an interview with The Associated Press in Kirkland, Wash. The Gateses, as the world's top philanthropists, are rethinking their work in America as they confront what they consider their unsatisfactory track record on schools, the country's growing inequity and a president they disagree with more than any other. (AP Photo/Ted S. Warren)

Despite the warning, both Gates and his longtime friend Warren Buffett are generally optimistic about the U.S. economy. In an essay for Time magazine, Buffett stated that years of growth "certainly lie ahead," and "most American children are going to live far better than their parents did."

Related: 20th Century entrepreneurs who changed the world [Lovemoney]

Gates concluded his AMA response by saying, "Despite this prediction of bumps ahead, I am quite optimistic about how innovation and capitalism will improve the situation for humans everywhere."

As for how you, the investor, should react if the market tanks, keep a level head and stay the course, says Buffett. In response to wild market fluctuations back in 2016, he told CNBC that buy-and-hold is still the best strategy.

Philanthropist and co-founder of the Microsoft Corporation Bill Gates speaks during the Plenary Session of the One Planet Summit at the Seine Musicale event site on the Ile Seguin in Boulogne-Billancourt, near Paris, France, December 12, 2017.   REUTERS/Etienne Laurent/Pool © Catalyst Images Philanthropist and co-founder of the Microsoft Corporation Bill Gates speaks during the Plenary Session of the One Planet Summit at the Seine Musicale event site on the Ile Seguin in Boulogne-Billancourt, near Paris, France, December 12, 2017. REUTERS/Etienne Laurent/Pool

"Don't watch the market closely," he advised those worried about their retirement savings at the time. "If they're trying to buy and sell stocks, and worry when they go down a little bit … and think they should maybe sell them when they go up, they're not going to have very good results."

Rather, think long term and leave your investment alone, says Buffett: "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes."

AdChoices
AdChoices

More from CNBC

image beaconimage beaconimage beacon